(Reuters) – Spirit Airlines on Wednesday said it expects to exit bankruptcy in the first quarter and rejected a merger with rival Frontier Group, saying it was not favorable for the low-cost carrier.
It received a proposal from Frontier earlier this month, where in its shareholders would $400 million in debt and a 19% share in Frontier, the company said in a regulatory filing.
Spirit rejected the proposal as it would not provide the anticipated shareholder value and raised concerns over the timing and successful completion of the deal.
The Florida-based airline declared bankruptcy in November after grappling with prolonged periods of financial losses, unsuccessful merger efforts and a substantial levels of debt.
The airline said it expects to complete its restructuring process in the first quarter.
(Reporting by Shivansh Tiwary in Bengaluru; Editing by Arun Koyyur)
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